October 4th 2024
By Ari Parker
As our nation’s capital, DC has a lot to offer in terms of entertainment for retirees. See the pros and cons of retiring in DC in this quick guide.
Washington, DC is well-known, and not just because it’s our nation’s capital. The city is filled with diverse cultural, historic, dining, and entertainment experiences. While retiring in a big city isn’t for everyone, for retirees who want to live in the middle of it all, DC could be the perfect place to retire.
In this guide, we’ll share everything you need to know about what it’s like to retire in DC. We’ll cover the main pros and cons and dive into details like retirement taxes, the cost of living, and the healthcare landscape.
The average retirement age in Washington, DC is 67.
Washington, DC has a high cost of living in comparison to the average in the US.
DC is filled with museums, shopping, restaurants, and outdoor spaces—there’s an activity for everyone in the city.
Many people choose to live in neighboring suburbs in Virginia and Maryland to maintain easy access to DC without all of the noise, traffic, and costs.
Key Takeaways:
Washington, DC is filled with activities, both indoor and outdoor.
Public transit and airports easily connect DC to the entire East Coast.
The cost of living in DC is very high, especially with regard to housing.
If the nation’s capital is calling you, it’s important to know what it’s like to live there. Here are some of the pros and cons of retiring to Washington, DC.
Washington, DC is filled with things to do, from museums (many are free!) to outdoor activities.
The public transportation system in DC is excellent.
DC is centrally located. It’s easy to get to almost any East Coast state from the DC area. With three airports in the region, it’s also easy to fly pretty much anywhere.
Washington, DC has a high cost of living.
Housing costs are especially high, and many homes are relatively old and small.
Traffic in the city is bad, especially during rush hour when many people commute into and out of the city.
Social Security benefits and railroad benefits in DC are not taxed. All other retirement income, including pensions and 401(k)s, are taxable. Income taxes in Washington, DC are taxed at a graduated rate, from 4% for income up to $10,000 to 10.75% percent for earnings over $1 million.
Other taxes that may impact your budget during retirement in DC are sales taxes and property taxes. DC’s sales tax is 6%. The average property tax in DC is .57%, which is pretty low compared to property taxes in the 50 states. That said, because of high housing prices, the amount paid in property taxes is relatively high compared to the average across the 50 states.
Despite being smaller (in square miles) than all of the states, Washington, DC has no shortage of retirement communities. There are 116 retirement communities in DC. Because DC is a large city with a high population density, all of the community centers are near a variety of medical centers, recreation sites, and entertainment options.
When choosing your retirement community, consider things like cost, services, activities, and location. After all, you want a place that will fit your lifestyle so you can make retirement everything you want it to be!
The climate in Washington, DC is generally mild—but it’s notably humid. In fact, if there’s one thing DC-area residents complain about most, it has to be the humidity. But the humidity doesn’t stop DC residents from enjoying the incredible outdoor spaces that the city has to offer.
24% of DC land is reserved for parks, and it’s relatively easy to find green space in the city. Rock Creek Park is a beautiful area for walking, running, and picnicking. With 1,754 acres, it’s more than twice the size of Central Park in New York City! The National Arboretum is another beautiful green space that’s perfect for enjoying outdoor activities or just taking in the sun while reading. And, of course, there’s the National Mall, where people of all ages gather to play sports, have a picnic, or sit down for a break from seeing DC’s many monuments and museums.
The Potomac River also allows DC residents to participate in water activities, like kayaking, paddleboarding, and river cruises.
Housing in Washington, DC doesn’t come cheap. The average price for a home in DC is $714,833. The current national average is $362,481. Because of the high cost of living, some retirees who want to stay in the DC area choose to live in one of the nearby suburbs. Alexandria and Fairfax in Virginia and Frederick in Maryland have lower housing costs (averaging at $520,700, $487,700, and $245,500 respectively).
The cost of living in DC can be equally expensive. Food, utilities, healthcare, transportation, and other goods will all cost you more than the average state.
The sales tax in Washington, DC starts at 6%. Some items are taxed at a higher rate. Sodas and soft drinks are taxed at 8%, restaurant meals at 10%, alcohol, renting vehicles, and tickets to sporting events at 10.25%, hotels at 14.95%, and parking in commercial lots at 18%.
DC’s Department of Aging and Community Living is the major agency providing services to seniors in Washington, DC. On their website, you can find information about senior centers, retirement villages, at-home meal service, and caregiver resources. There are also programs for LGBTQ seniors, assistance with installing home adaptability equipment, and services that connect seniors with volunteering opportunities.
Washington, DC is usually rated as one of the healthiest cities in the country. There are also many excellent hospitals in the DC area. MedStar Washington Health Center was rated one of the top 250 hospitals in the country. It received additional awards for cardiac care, coronary care, and prostate surgery.
Some older residents in DC have reported difficulty accessing healthcare, and certain districts within the city have far worse health outcomes than others.
Washington, DC is home to 94,000 Medicare enrollees, making up 14% of the city’s population. 36% of those on Medicare are also eligible for Medicaid.
When you first get Medicare, you’ll enroll in Original Medicare. Once enrolled, you can choose to stay on Original Medicare or switch to a Medicare Advantage plan. While over 50% of the US Medicare population is enrolled in a Medicare Advantage plan, only about 25% of DC Medicare enrollees have chosen Medicare Advantage.
Choosing between Medicare Advantage and Original Medicare is a personal choice. You should carefully consider your health and financial situation as well as the pros and cons of both coverage types. Below are some resources that will help you understand your Medicare options in DC and make the right choice for you. If you have questions or want help, we’ve got you covered! Give us a call at (855) 900-2427 or schedule a time to talk to get free support with your Medicare.
Medicare resources for DC residents:
Washington, DC’s cost of living is a reason for many people to leave the city when they retire. A lot of people who lived and worked in DC grow sick of the traffic and humidity and flock to places that are less dense, have warmer winters, and are cheaper to live in.
Still, many people love the city and all of the amazing dining and entertainment options it provides. It’s worth noting that many people choose to retire in Virginia or Maryland to maintain easy access to all DC has to offer, while saving a bit on housing costs. If DC is on your retirement list, schedule a visit to the capital and see what it’ll offer you.
